CCI to issue ‘cease and desist’ order against NSE soon

Under the ‘cease and desist’ order, NSE will have to stop subsidising its currency derivative operations. The CCI on Wednesday pronounced NSE guilty of abusing its dominant market position and adopting unfair trade practices in currency derivatives trading

New Delhi: The Competition Commission of India (CCI) is likely to issue a ‘cease and desist’ order shortly against the National Stock Exchange (NSE) to stop the country’s premier bourse from subsidising its currency derivative (CD) operations.

“The Competition Commission will serve the final order to NSE by 2nd or 3rd June under Section 27 of the Competition Act 2002,” sources close to the development told PTI.

The CCI on Wednesday pronounced NSE guilty of abusing its dominant market position and adopting unfair trade practices in currency derivatives trading.

Sources said that under Section 27, the CCI can issue ‘cease and desist’ order to refrain the company from pursuing any anti-competitive practices.

“Under the order, NSE will have to stop subsidising its currency derivative operations.” they added.

The CCI’s final order will be issued after NSE files a reply to the show-cause notice. Based on the response, the CCI will decide on the quantum of fine to be imposed on NSE.

MCX-SX, promoted by commodity exchange MCX and Financial Technologies, had alleged before the CCI that NSE substantially reduced admission and trade related fees to eliminate competition and discourage other entities from entering the market.

The CCI’s Wednesday order said, “It can be said that the two relevant markets (currency and non-currency derivatives segments) have associational links. Therefore, it is concluded that NSE has used its position of strength in the non CD segment to protect its position in the CD segment.”

An investigation report of the CCI director general had found NSE used its dominant position and original monopoly in equity, F&O (Future and Options) and WDM (Wholesale Debt Market) markets to protect its position in the CD market.

MCX-SX had argued that all market segments such as equity and currency derivatives are related while NSE had argued that these different segments are actually different markets.

CCI is believed to have gone by NSE’s view on this issue by concurring that segments like equity and currency derivatives may be related but are different markets.

In the recent past, MCX-SX has been leading over NSE in currency derivative segment although NSE has a dominant position in the overall market.

While there was no official confirmation, sources said that CCI’s order against NSE was based on a majority view of its members and not by consensus.


Samsung Mobile: Smart phone, not so smart ads

Mobile phone advertisers are quite literally trying to outshout each other through ads that are mostly irritating and intolerable and Samsung Mobile tops the heap

It's been pouring mobile phone ads on our small screens for some time now. And the noise levels have gone through the roof, especially after number portability and 3G arrived. And of course, every time that there's a new cell phone model launched in the market.

Most of these ads are quite irritating and intolerable, as the advertisers literally get down to outshouting each other, seriously shooting up the sales of migraine tablets. At the top of the heap in the current blast on TV is Samsung Mobile. They have released three new commercials, and frankly I am unable to decide which one gets my goat faster. These ads are meant to sell their new handsets called Hero 3G, Galaxy Ace and Galaxy Pro.

The Hero 3G ad must be the worst of the lot. A bunch of guys have taken to skydiving. And as they float, dive and dance in the air, what do they do? No, they don't romance, they don't palpitate, they don't sing, they don't bond… instead, they discuss features of Samsung Mobile Hero 3G! No, I swear I kid you not. Can you even think of more incredible and nonsensical advertising? I certainly cannot.

Also, there's another thing that didn't strike the makers of this ad. Already, most users of 3G are unhappy with connectivity and clarity of sound. And in this commercial, the youngsters scream and shout in order to be heard! When what they ought to have been doing is whispering to each other, even if they were compelled to whisper features of the phone. That may have salvaged this commercial a wee bit.

The other two ads that sell Samsung's so-called smart phones are even less smart. A bunch of hip dudes and hot gals hold up the phones to the camera, and talk about the assorted phone features and applications! And they do it in a sing-song manner, hoping that the gimmick would have the viewers dying to watch this tamasha.

If it still hasn't occurred to you yet, Samsung Mobile has actually put out enormously boring product brochures in their television ads. In this day and age of heavy noise and massive ad clutter on the idiot box, it defies logic.

Only one question remains to be asked: How can a smart phone be backed by such inane advertising? How smart can the phone be with that sort of a resume?




5 years ago

The HERO 3G is the WEIRDEST ad of this decade. It silly, cheap in communication and a complete waste of money. If SAMSUNG believes that ANY PUBLICITY IS GOOD PUBLICITY, then they get 100/100 from me.

About the other two, I wonder if the ad makers have only one perception of the 'dudes' of this generation. Guys with hair like a bird's nest, weird beard with no mustache... I wonder if hardly 1% of the targeted youngsters resemble such a look.

Do not panic guys, this will have a timeline like other ads. Hopefully, the future ads will be more reasonable .

SEBI to probe alleged irregularities in Vaswani IPO

Around 100 investors complained to the market regulator alleging that certain applications were submitted to artificially inflate the subscription in QIB and HNI category to attract and mislead the investors. However, post the closure of the issue the same applications were withdrawn through various methods

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Thursday said it will probe alleged irregularities in subscription of shares of sponge iron producer Vaswani Industries and investigation will be completed within 30 days, reports PTI.

The company, its promoters, directors and intermediaries have been asked by SEBI to cooperate in the investigations. SEBI, on 13th May, had withheld the listing of the company’s initial public offer (IPO) following complaints by about 100 investors alleging large scale withdrawal and rejections in the issue.

“A detailed investigation shall be initiated into the matter... The investigation shall be expeditiously completed within a period of 30 days, so that a decision on the listing application by the stock exchanges can be taken within the statuary time limit provided under the Companies Act,” SEBI said in an order.

The regulator also directed the merchant bankers concerned to deposit the amount collected from the issue in an interest generating account.

A sum of Rs49 crore being the issue proceeds has been kept in public issue account opened for the purpose which is accessible by the issuer only after the listing permission is granted by the stock exchanges.

The IPO of Vaswani Industries, which closed on 3rd May, was subscribed four times on the final day of the issue.

The company had offered one crore shares at a price band of Rs45-Rs49. Ashika Capital was the sole book running lead manager of the issue.

The issue price was fixed at Rs49 and the securities issued through the IPO were allotted to investors on 10th May.

However, following complaints SEBI asked the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) to withhold the listing of securities until further instructions.

The complainants alleged certain applications were submitted to artificially inflate the subscription in qualified institutional buyers and high-networth individuals category to attract and mislead the investors.

The complaints said that post the closure of the issue, the same applications are being withdrawn by way of stop payment, stop allotment, cheque return and wrong cheque dates.

Vaswani Industries is engaged in the integrated business of manufacturing sponge iron, steel billets and ingots and power generation.


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